M/S. TORRENT POWER LIMITED,AHMEDABAD V. THE ACIT, CIRCLE-4(1)(2), AHMEDABAD

MA 59/AHD/2024

AI Insights

The case involves Torrent Power Limited, which filed a Miscellaneous Application against a common order passed by the Income Tax Appellate Tribunal, Ahmedabad. The application sought to address the non-adjudication of an additional ground related to the deduction claim for premium paid on leasehold land rights amounting to Rs. 1,05,55,79,107 as revenue expenditure. The Tribunal had previously adjudicated on three additional grounds but overlooked this specific ground. The assessee argued that this claim was similar to deductions allowed in previous cases involving Torrent Energy Ltd., which had merged with Torrent Power Limited. However, the Tribunal found no record of this additional ground in the submitted documents and thus dismissed the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712783 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2015-2016
• Other Referred Cases: DCIT vs Sun Pharmaceutical Industries Ltd., Torrent Power Limited v/s DC.IT (OSD) Circle-8, Ahmedabad, Torrent Energy Ltd Vs. The ITO Ward-8(1), Ahmedabad
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revenue expenditure

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Torrent Power Limited “Samanvay”, 600, Tapovan, Ambawadi, Ahmedabad-380015 PAN: AACCT0294J (Appellant) Vs The ACIT, Circle-4(1)(2), Ahmedabad (Respondent) Assessee Represented: Shri S.N. Soparkar, Sr. Adv. Revenue Represented: Shri Sudhakar Verma, Sr. D.R. Date of hearing : 02-05-2025 Date of pronouncement : 31-07-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This Miscellaneous Application is filed by the assessee as against the common order dated 21-09-2023 passed by this Tribunal in ITA No. 128/Ahd/2020 relating to Asst. Year 2015-16. 2. The Grounds of Appeal raised by the assessee are as follows: 3. In this connection, the assessee company submits that while Your Honors had adjudicated upon the three additional grounds raised by the assessee vide Para 97 on Pg No. 67, the additional ground in relation to M.A. No: 59/Ahd/2024 (in ITA No: 128/Ahd/2020) Assessment Year: 2015-16 Printed from counselvise.com M.A. No. 59/Ahd/2024 (in ITA No. 128/Ahd/2020) A.Y. 2015-16 M/s. Torrent Power Limited Vs. ACIT 2 claim of deduction in respect of premium paid on leasehold land rights of Rs. 1,05,55,79,107/- as revenue expenditure following the Gujarat High Court decision in case of DCIT. vs Sun Pharmaceutical Industries Ltd. (227 CTR 206) was not adjudicated upon. 4 The Assessee would like draw Your Honor's attention to fact that while the three additional grounds were adjudicated upon vide Para 98 and 99 on Pg No. 68, the one relating to claim of deduction in respect of premium on leasehold land has not been adjudicated upon. Such claim has already been allowed in case of Torrent Energy Ltd. (the company that is now merged with the Appellant company) in ITA No. 1562/Ahd/2015 vidę order dated 19-03-2019 5 The additional ground in relation to claim of premium on leasehold land has been. through oversight not been adjudicated upon. The extract of the said additional ground is reproduced under for ease of reference “1 Without prejudice to all the grounds raised, in law and in the facts and circumstances of the appellant's case, the appellant requests for admission of its additional claim and for allowing deduction of premium paid on leasehold land rights, amounting to Rs 1,05,55,79,107/- as revenue expenditure, in pursuance to the decision of the jurisdictional High Court in case of DCIT Vs Sun Pharmaceuticals Industries Ltd. (227 CTR 206) Ahmedabad ITAT in case of Torrent Power Limited v/s DC.IT (OSD) Circle-8, Ahmedabad (ITA No 1577/Ahd/2015) and Ahmedabad ITAT in case of Torrent Energy Ltd (the company that is now merged with the Appellant company) Vs. The ITO Ward-8(1), Ahmedabad (ITA No 1562/Ahd/2015).\" 6. Since non-adjudication of any ground of appeal is a mistake apparent on record, the Assessee company requests your Honour to rectify this error by adjudicating on this Additional Ground of Appeal. 3. We have heard rival submissions and perused the materials available on record. Three Additional Grounds raised by the assessee were considered by this Tribunal vide Page Nos. 67 to 70 vide Paragraph Nos. 97 to 101.2 of the Tribunal order. Further perusal of the Paper Book filed by the assessee, there is no additional ground relating to claim of deduction in respect of premium paid on leasehold land rights of Rs.1,05,55,79,107/- as revenue expenditure. Revenue also sought for a copy of the Printed from counselvise.com M.A. No. 59/Ahd/2024 (in ITA No. 128/Ahd/2020) A.Y. 2015-16 M/s. Torrent Power Limited Vs. ACIT 3 Additional Grounds filed by the assessee with details of date stamp. However assessee could not produce the same. Thus in the absence of any additional grounds before this Tribunal, the question of non- adjudication does not arise. Thus the M.A. filed by the Assessee is hereby dismissed. 4. In the result, the Miscellaneous Application filed by the assessee is dismissed. Order pronounced in the open court on 31 -07-2025 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 31/07/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद Printed from counselvise.com "